ARTICLE 1 – (1) The purpose of this regulation is to set the rules and procedures related to insurance of saving deposits held within the credit institutions and participation funds which belong to natural persons, and the premiums collected by the Saving Deposits Insurance Fund.

Legal basis

ARTICLE 2 – (1) This regulation is prepared based on the article 63, paragraph 3 of the Banks Act no. 5411 dated October 19, 2005.

Definitions

ARTICLE 3 - (1) The terms and expressions used in this regulation shall have the following meanings;

a) Unit Account Value: It is the unit account value defined in the third article of the Regulation on Fundamentals and Principles on Acceptance and Withdrawal of Deposits and Participation Funds, Overdue Deposits, Participation Funds, Securities and Receivables published in the Official Gazette No. 26333 dated November 1, 2006.

b) Fund: Saving Deposits Insurance Fund.

c) Fund Board: Saving Deposits Insurance Fund Board.

ç) Act: Banks Act no. 5411, dated October 19, 2005.

d) Credit Institution: Commercial and Participation Banks.

e) Central Bank: Central Bank of the Republic of Turkey.

(2) Other terms used in this regulation are used in the same meaning as they are used in article 3 of the Act.

Insurance of Deposits and Participation FundsScope and amount of insurance

ARTICLE 4 - (1) The following items set the insurance coverage rules for the individual accounts opened in the form of New Turkish Lira (YTL), foreign exchange currency and precious metal in a domestic branch of a credit institution operating in Turkey, where commercial transactions are excluded with exception of checking activities;

b) Each of special current accounts and unit value of participation fund accounts is insured up to an amount of 100.000 YTL per natural person.

(2) Although they fall within the specified coverage limit mentioned in paragraph 1, parts of these amounts are not subject to insurance coverage in circumstances below:

a) Part of the interest accrued to deposit accounts as of the date of revocation of the operating license of the deposit bank where accounts holders are paid by the Fund which exceeds the amounts calculated by applying average interest rate of five largest deposit banks and by applying maximum interest rates announced to the public and declared to the Central Bank by the defaulted bank,

b) Part of the profit shares accrued to participation accounts as of the date of revocation of the operating license of the participation bank where accounts holders are paid by the Fund which exceeds the amounts calculated by applying average profit share of three largest participation banks.

Deposits and participation funds that are not under insurance coverage

a) Deposits, participation funds and other accounts of main shareholders of the relevant credit institution and similar type of accounts which belong to their mother, father, spouse and children under their custody.

b) Deposits, participation funds and other accounts of chairman or members of the board, general manager and assistant general managers of the relevant credit institution and similar type of accounts which belong to their mother, father, spouse and children under their custody.

c) Deposits and participation funds which fall within the scope of the asset values generated through the crimes stated in article 282 of the Turkish Criminal Law no. 5237 dated September 26, 2004.

ç) Deposits and participation funds in the credit institutions which were established exclusively to implement offshore banking activities in Turkey.

Payment of insured deposits and participation funds

ARTICLE 6 - (1) Payments subject to insurance coverage are payable in New Turkish Lira (YTL). New Turkish Lira equivalent of foreign exchange accounts are calculated by applying the foreign exchange buying rate announced by Central Bank on the date the credit institution’s operating license is revoked. New Turkish Lira equivalent of accounts indexed to gold are calculated by applying closing prices of Istanbul Gold Stock Exchange and Central Bank’s foreign exchange buying rate announced on the day the credit institution’s operating license is revoked.

ARTICLE 7 - (1) Saving deposits and participation fund premiums are calculated based on the financial statements prepared at the end of months; March, June, September and December. Basic premium rate is 15/10,000 of the insured amount of the accounts of credit institutions stated in paragraph 1 of the fourth article and collected on quarterly basis. Basis points specified below are added to the basic premium rate if conditions given below are met.

(2) Taking quarterly balance sheet into consideration;

a) If the lowest of Capital Adequacy Standard Ratios calculated on the basis of consolidated and unconsolidated balance sheet is,

1) Equal to eight percent or higher than eight percent and lower than twelve percent, 2/10,000,

2) Lower than eight percent, 5/10,000,

b) 1/10,000 for the credit institutions whose absolute value of simple arithmetic mean of Foreign Exchange Net General Position/ Shareholders’ Equity Standard Ratio is higher than the upper ratio limit specified under article four of the Regulation on Calculation of Foreign Exchange Net General Position/ Shareholders’ Equity Standard Ratio Using Consolidated and Unconsolidated Financial Statements and Its Application as specified in issue 26333 of the Official Gazette dated November 1, 2006.

c) 5/10,000 for the credit institutions whose total amount of loans allocated to the risk group which the credit institution belongs to exceeds the limit specified in the legislation.

ç) 1/10,000 for the credit institutions whose ratio of the total net amount (calculated by deducting the allocated special provisions) of loans classified under third, fourth and fifth groups according to the provisions of the Regulation on the Identification of Loans Quality and Other Receivables of Banks and Methods and Principles for Allocating Provisions published in the Official Gazette No. 26333 dated November 1, 2006 and placed in the asset side of the balance sheet to the total amount of all loans classified according to the provisions of the Regulation and placed in the asset side of the balance sheet is higher than five percent.

d) 1/10,000 for the credit institutions whose net total of affiliates and mutually controlled partnership, tangible assets except for assets acquired under the capacity of leaser within the scope of the Leasing Law no. 3226, dated June 10, 1985 by participation banks, prepaid expenses and deferred taxes is equal to or greater than the amount of shareholders’ equity.

Delivery of documents

ARTICLE 8 - (1) Credit Institutions are obliged to send to the Fund,

a) the total amount of the accounts specified in article four of this regulation and the sum of the amounts subject to insurance illustrated both in new Turkish Lira and foreign currency as of each month’s end and until the twenty-fifth day of the following month.

b) the insurance premium tables whose content and format is set by the Fund in order to form a base for deposit insurance collection until the end of next month following the relevant period.

(2) For the declarations to be made by credit institutions for gold and foreign exchange accounts, closing price of the Istanbul Gold Stock Exchange and cross rates announced by the Central Bank on the last day of the period are taken as basis.

(3) For the decelerations to be made by participation banks, unit account value of participation accounts are taken in to account.

Payment of insurance premiums

ARTICLE 9 - (1) Without any notification, saving deposits and participation fund premiums are payable to the Fund until the end of the last business day of the second month following the period the financial statements prepared in the form of same currency type for the New Turkish Lira, US dollar and Euro accounts and in US dollars for the accounts in gold and other currency types.

(2) Overdue premiums and the additional premium amounts payable arising from the examination findings that the assessment values, rates and limits which constitute the basis for the premium calculations are different from the ones declared by the credit institutions (including the default fine calculated beginning from the last payment day of the related payment period according to the Public Receivables Collection Act No. 6183 dated July 21, 1953) are collected by the Fund.

(3) If insurance premium table is not sent and the insurance premium is not paid within a specified time period, insurance premium amount calculated by applying the highest premium rate over one and half times the previous premium base of the related credit institution is collected by the Fund including the default fine calculated beginning from the last payment day of the related payment period according to the Act No. 6183.

(4) If it is realized that premiums collected with respect to the amounts declared by credit institutions exceed the amount that has to be collected, excess amount is paid back to the credit institution without paying any interest or it is deducted from the premium liability for the next period of the credit institution by the Fund.

ARTICLE 10 - (1) Credit Institutions must put up a written notice, whose content will be prepared by the Fund, about insurance of saving deposits and participation fund accounts in a visible place in their branches.

Premium discount in mergers and transfers

PROVISIONAL ARTICLE 1 - (1) Insurance premium discount rights gained according to subparagraph (b), paragraph 1, Article 18 of the Regulation on Mergers and Transfer of Banks the Regulation published in the Official Gazette No. 24445 dated June 27, 2001 abolished by the Regulation on Mergers, Transfer, Division and Share Exchange of Banks published in the Official Gazette No. 26333 dated November 1, 2006 are reserved.

Previous period premium obligations

PROVISIONAL ARTICLE 2 - (1) Insurance premiums calculated on the basis of the financial statements prepared as of September 30, 2006 are collected within the scope of the Regulation on Private Finance Institutions Special Current and Participation Funds Guarantee Fund published in the Official Gazette No. 24880 dated September 18, 2002 and the Principles on Saving Deposits Subject to Insurance and Premiums Collected By Saving Deposits Insurance Fund which became effective upon the Banking Regulation and Supervision Agency Resolution No. 1143 dated October 31, 2003 and whose legal provisions are still in effect within the framework of the Fund Board Resolution No. 496 dated December 1, 2005.

Effective date

ARTICLE 11 - (1) This regulation becomes effective on the day it is published and is valid from November 1, 2006.

Execution

ARTICLE 12 - (1) Provisions of this Regulation shall be executed by the Chairman of the Banking Regulation and Supervision Board.